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  • Chapter 7 – Bond Valuations_Part 2

    CHAPTER 7 : BOND VALUATION

    WEEK 11 (Lecture) and (Tutorial)

    SYNOPSIS / OVERVIEW

    Chapter 7 cover the basics of fixed income analysis. The main topics covered are features of fixed income securities and overview of bond sectors and instruments, risks associated with investing in bonds to include interest rate risk and credit risk, introduction to the valuation of fixed income securities to include valuing mortgage-backed and asset-backed securities and bonds with embedded options.

    Here are the main topics to be covered in Chapter 7 (Week 11):

    • Bonds and Bond Valuation
    • More on Bond Features
    • Bond Ratings
    • Some Different Types of Bonds
    • Bond Markets
    • Inflation and Interest Rates
    • Determinants of Bond Yields

    LEARNING OUTCOMES

    By the end of this lesson, student should be able to:

    • Explain bond ratings and what they mean.
    • Discuss the impact of inflation on interest rates.
    • Explain the term structure of interest rates and the determinants of bond yields.

    REQUIRED READINGS

    Chapter 8: Bond Valuation

    Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

    Chapter 6: Debt Instruments

    Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

    Bond Valuation PowerPoint Template - PPT Slides | SketchBubble

Chapter 7 – Bond Valuations_Part 1Chapter 8 - Common Stock Valuation_Part 1